Orlando Magic: Demand exists for $100M entertainment complex

(Ricardo Ramirez Buxeda,…)

April 22, 2013|By Mark Schlueb, Orlando Sentinel

Orlando Magic executives said Monday they believe there is enough demand for additional hotel rooms, office space and retail in downtown Orlando to move forward with a $100 million sports-and-entertainment complex in Parramore.

Magic CEO Alex Martins hopes construction could start on at least part of that complex in about a year, on city-owned land across the street from the Amway Center arena. But it will likely be built in at least two phases because Orlando Police Headquarters sits on part of the land and the city's officers couldn't be moved that quickly.

Mayor Buddy Dyer, who supports the Magic development, estimated it would take about three years to design and build a new police station so the current one could be torn down.

The Magic have two purchase options on the property, one for the portion of the site containing a city parking garage, and the other for the portion with OPD headquarters, as well as a radio tower, parking, car wash and fueling station used by police.

At a special workshop Monday, Martins told city commissioners that a feasibility study found the demand for the type of mixed-use development the team has proposed.

"There is great and exciting opportunity for a sports-and-entertainment district right in that core," Martins said. "There is demand in downtown Orlando for all these components, in addition to additional residential."

The development would likely include an office tower that would contain the Magic's corporate headquarters, a hotel, a parking garage, restaurants and other entertainment-focused retail space, and perhaps apartments or condominiums.

But Magic representatives revealed few specific details and still must negotiate a purchase price from the city.

Negotiations over price have already begun. A proposed purchase contract for both parcels is expected to go before the City Council on June 3.

Dyer said a fair price must also include other factors, such as replacing the parking revenue that will disappear when the city garage is torn down.

"There are still a number of components that we're addressing: the purchase price issue, the issue of moving the communications tower, the issue of eventually moving OPD … so there are still a number of open items," Dyer said.

Magic representatives said it's too early to speculate about what retailers or hotel brand might be at the complex. Dyer said he'd like to see entertainment options that appeal to a different demographic than the 20-somethings that now fill downtown nightclubs into the early-morning hours.

"We have a very robust nightlife scene after about 10 o'clock at night, so I'd like to see a mix of retail that's more geared to families," he said.